Nightclub Live Unlocked

Nightclub — Sample Plan
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Table of Contents
1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
3.0 Business Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

4.1 Market
Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4.2 Target
Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
4.3 Service
Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
4.3.1 Business
Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.3.2 Main
Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
5.0 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10
5.1 Marketing
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
5.2 Sales Strategy
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
5.2.1 Sales
Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
5.2.2 Daily Revenue
Forcast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
6.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

6.1 Management
Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
6.2 Management
Team Gaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
6.3 Personnel Plan
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
7.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

7.1 Important
Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
7.2 Break-even
Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
7.3 Projected
Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
7.4 Projected Cash
Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
7.5 Projected
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
7.6 Business
Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Nightclub - Sample Plan
1.0 Executive Summary
This Nightclub will be the premier, high-energy, themed dance and nightclub in Southern,
Your State. Our goal is to remain a step ahead of our competition through an exemplary
service provision. We expect our guests to have more fun during their leisure time. We will
provide more video and electronic technology per square footage than anyone else in the
region. A simple, yet unique, themed menu and atmosphere will create a sense of
'belonging' for locals and tourists alike. Our operating credo is: "happy enthusiastic
employees create happy enthusiastic guests."
The main objectives of the development of this new venue are:
• Capitalize on excellent location opportunity with swift commitment to the new

Town Square development.
• To launch the venue with a highly publicized grand opening event in the summer
of 2001.
• To maintain tight control of costs, operations, and cash flow through
diligent management and automated computer control.
• To maintain a food cost below 33% of food revenue.
• To maintain a total beverage cost below 25% of beverage revenue.
• To exceed $3 million in annual sales by the third year of plan implementation.
The keys to success in achieving our goals are:
• Provide exceptional service that leaves an impression.

• Consistent entertainment atmosphere and product quality.
• Managing our internal finances and cash flow to enable upward capital growth.
• Strict control of all costs, at all times, without exception.
Highlights
$3,000,000
$2,500,000
$2,000,000
Sales
$1,500,000 Gross Margin
$1,000,000 Net Profit
$500,000
$0
2001 2002 2003
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 1
2.0 Company Summary
The key elements of the Nightclub's concept are as follows:
1. Entertainment and dance based themes -- The company will focus on themes
that have mass appeal.
2. Distinctive design features -- The Nightclub will be characterized by the elaborate

dance club situated in a spectator setting which comfortably accommodates 350
guests. The area will also offer three private sky boxes which can be combined for
use in a conference or private party setting. This room is intended for special events
and daily use. The adjoining dining room and bar would present an inviting and
relaxing atmosphere, which displays a collection of musical and dance memorabilia.
A live dj will coordinate the events and entertain the patrons with music and games
during music breaks and off-times.
3. Location, location, location -- One of the major advantages that the Nightclub
will have over its competition will be its location in the new, high-profile Your
Town Center.
4. Gaming -- The Nightclub will provide several interactive style video games and
pool tables to provide for both additional entertainment and revenue.
5. Quality food -- All would be lost without special attention being paid to the level of
food quality. A simple menu offering foods similar to those found at a premier
venue. Traditional 'bar' appetizers will be on hand for people craving nachos,
wings, or quesadillas while they drink and enjoy themselves.
6. Exceptional service -- In order to reach and maintain a unique image of quality, the
Nightclub will provide attentive and friendly service through a high ratio of service
personnel to customers, and will also invest in the training and supervision of its
employees. We estimate nearly one service staff member for every 35 guests.
2.1 Company Ownership
The Nightclub is a privately-held LLC, the details of which have not been solidified as of
the date of this publication. The LLC consists of three principals DD, HK, BK.
D D holds a BS in business administration from the The State University. He has held
restaurant management positions for the PepsiCo Corporation. He successfully opened
and managed two nightclubs, and went on to open other operations including a sports
bar. He is currently in his fifth year in the hotel industry, where he manages a successful
sales department.
HK holds a BA in Industrial Media Management, with a concentration in marketing. She has held a
financial analyst position with Lockheed Martin and L3 Communications for two years.
BK has been managing a staff for eight years. He is currently in his fifth year in
the automotive industry, where he is a successful finance manager.
2.2 Start-up Summary
The company is seeking a loan for start-up purposes for a new entertainment venue in
Your City.
Funds needed to accomplish goal referenced above will be $x.x million. The applicant
will require the entire $x.x million to finish project build-out.
We will utilize the anticipated loans in the amount of $x.x million to build out the approximate 10,000
square foot space and purchase equipment necessary for the start-up of a new nightclub venue. The
following tables and charts illustrate the capital requirements.
Start-up
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Expenses Assets Investment Loans
Table: Start-up
Start-up
Requirements
Start-up Expenses
Air Cond. Upgrade $25,000
Audio/Lighting Lease Payment $2,750
Bar Equipment $9,500
Bar Supply $5,500
Cash Reserves $125,000
Exterior Signage $15,000
Fees and Permits $35,000
FFE $75,000
Impact Fees $7,500
Initial Marketing $22,500
Interior Refit $45,000
Kitchen Upgrade $12,500
Legal $7,500
Opening Salaries Deposits $25,000
Paper Products $2,500
Point of Sales Systems $35,000
Restroom Upgrade $35,000
Total Start-up Expenses $485,250
Start-up Assets Needed
Cash Balance on Starting Date $ 75,000
Start-up Inventory $ 7,500
Other Current Assets $0
Total Current Assets $ 82,500
Long-term Assets $0
Total Assets $ 82,500

Total Requirements $567,750
Funding
Investment
Investor 1 $250,000
Investor 2 $250,000
Other $67,750
Total Investment $567,750
Current Liabilities
Accounts Payable $0
Current Borrowing $0
Other Current Liabilities $0
Current Liabilities $0
Long-term Liabilities $0
Total Liabilities $0
Loss at Start-up ($485,250)
Total Capital $82,500

Total Capital and Liabilities $82,500
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 4
3.0 Business Description
The emergence of the Main Street area of Your City represents a unique opportunity for
a high-energy, dance-themed venue. The development's central location, demographics,
and lack of direct competition are major advantages to this project. The proposed venue
will provide a local solution to the lack of social atmosphere and live sports venues
geared primarily toward the 21-35 age group in the Your City area and will help keep
late night entertainment expenditures within the localized region.
The new venue will specialize in high-energy themes, a quality video and gaming area,
and will offer beer, wine and an array of liquors and mixed drinks. In addition, the venue
will sell non-alcoholic beverages such as soft drinks, juices and bottled water. A "casual"
food menu consisting mostly of appetizers and small entrees ranging in cost from six to
nine dollars will also be available. The initial hours of operation will be 11:00 P.M. to 2:00
A.M., four nights a week. The establishment will draw primarily from the Your City market
while attracting guests from the area's other surrounding cities and towns.
4.0 Market Analysis Summary
The concept and management of the Nightclub has been well received, and has been offered key
placement at the center of Your City's new First & Main Town Center development. This commercial
center spans 138 acres and promises an immediate primary trade population of 332,000 people with
a secondary population of 164,000 people. The Boulevard at the Avenue average daily traffic counts
are currently 53,000, and will increase to 72,000 by 2003 following the Boulevard's connection
northward to I-25 in 2001. At the center of the complex will be a 16-screen Cinemark and IMAX
theater opening March, 2000. The Center's planners having met the Nightclub's management and
have reviewed the concept. They have indicated that the Nightclub is "exactly" what they were
looking for and wish to place it directly in front of the theater. The annual projected traffic for what
Cinemark is calling their 'flagship' location is 1.4 million people, which exceeds their current
Tinseltown location at the arena.
The Nightclub will be a 10,000 square foot unit, which will also house the company's
corporate business office. The dance club and bar will accommodate 750 people. With Your
City's rapidly growing population, the variety of the Nightclub from across the country
would create mass appeal for all of the Nightclub's customers. The store will be equipped
with state-of-the-art audio and video systems like none other found in Your City. It will
serve the need for a true nightclub in Your City. The general appearance will be clean,
open, and pleasing to the customer. The demographics are favorable, with minimal
competition from other dance-themed venues and bars.
4.1 Market Segmentation
We see the Nightclub as appealing to three major market segments. Fortunately, the long, late
night hours of operation help the Nightclub lend itself to multiple segment appeal. Our market
segmentation scheme allows some room for estimates and nonspecific definitions.
1. Childless Young Professionals--Due to our proximity to the IMAX and Cinemark theaters,
we must appeal to single adults and young couples. Whether it is a group of friends or a
couple out to see a movie together, these people need a place to eat/drink either before
and/or after their movie. These customers will range in age from 27 to 40. The Nightclub will
appeal to this category by switching the tempo and
entertainment to be more appealing to adults as it gets later into the evening. We
also anticipate a 15% annual growth rate in tandem with the growth rate of Your
City and through increased popularity.
2. College Students--By creating an environment that is appealing to college

students, we secure a natural progression between the high school student and the
young professional. Through word of mouth, the Nightclub expects realize an
increase of five percent annually from this segment.
3. Tourists and Business Travelers--More and more business and travelers and
tourists are finding themselves in Your City every year as is made evident by the
increased demand and subsequent expansion of the local airport. We plan to reach
these people through direct marketing to local hotel patrons. We anticipate a 20%
annual growth rate in this segment. As our relationships grow with the local hotels,
so too will the word of mouth recommendations from the hotel staff as well as the
patronizing of our restaurant by their families. Our future plan is to publish a simple
website in order to create awareness to any traveler who wants to take an
advanced look at the club before their visit.
The following chart and table outline the target market segments for the Nightclub,
and include annual growth projections.
Table: Market Analysis

Market Analysis
Potential Customers Growth 2001 2002 2003 2004 2005 CAGR

Childless Young 15% 132,000 151,800 174,570 200,756 230,869 15.00%
Professionals
College Students 5% 100,000 105,000 110,250 115,763 121,551 5.00%
Tourists/Business Travelers 20% 100,000 120,000 144,000 172,800 207,360 20.00%
Total 13.95% 332,000 376,800 428,820 489,319 559,780 13.95%
Market Analysis (Pie)
Childless Young Professionals

College Students
Tourists/Business Travelers
4.2 Target Market Segment Strategy
Our strategy is based on serving our niche markets exceptionally well. The nightclub
enthusiast, the tourist and business traveler, the local nightclub crowd, the local service
industry as well as groups going out together, can all enjoy the Nightclub experience.
The marketing strategy is essential to the main strategy:
• Emphasize exceptional service.

• Create awareness of the Nightclub's unique features.
• Focus on our target markets.
We must charge appropriately for the high-end, high-quality service and food that we offer. Our
revenue structure has to match our cost structure, so the wages we pay and the training we provide
to assure superior quality and service must be balanced by the fees we charge.
Part of the superior experience we offer is the simplicity o the menu items. While being unique,
they are relatively inexpensive and easy to prepare. While a premium is appropriate for the
experience, the pricing has to be balanced in accordance with what we are serving.
All menu items will be moderately priced. We expect an average guest expenditure of
$12.50 for beverages and $7.50 for the percentage of our guests who choose to take
advantage of our food menu. Our target customer spends more than the industry average
for moderately priced establishments. This is due to our creating an atmosphere that
encourages longer stays and more spending, while still allowing adequate table turns due
to extended hours of appeal.
4.3 Service Business Analysis
High energy and dance themed venues have significantly impacted cities from coast to
coast in the nineties. Los Angeles' Hollywood, New York's Times Square, and Seattle's
Pioneer Square are just a few examples. Entrancing their audiences with high-powered
lights, sound, music, and interactive entertainment, these venues are still one of the
highest cash flow businesses in the world. Our localized studies have shown that the
average person will spend three to four hours per weekend in this type of an environment
and will spend an average of twenty to fifty dollars in that time frame. As we approach the
new millennium, this trend shows no signs of declining.
The typical venue of our style is open from 8:00 P.M. to 2:00 A.M., and within this time
frame, the venue can achieve gross revenues anywhere from $3,500 to $25,000, nightly.
The primary sources of revenue in a venue of this type are high volume traffic, coupled
with comparably nominal spending. In addition to alcohol revenues, we will also generate
substantial revenues from food sales that can typically range from seven to ten dollars per
person, and admission fees that range between five and ten dollars per admit.
Entertainment venues in the late 1980's and 1990's focused on high-energy light and
sound, multiple source video screens, and participative events. This relatively simple
concept is still quite popular today. However, these concepts have greatly evolved with
society. In recent years this industry has become more sophisticated with the availability of
new technology. Larger metropolitan areas have taken this technology to new heights with
sound, lighting, video and interactive designs that create an exciting and memorable
experience. Fortunately, no one in Your State area has been a pioneer in this specific
segment of the industry as of the date of this report.
Additionally, the nightclub and bar industry is shifting towards a more entertainment-oriented
concept. Guests of these venues are not only offered a dynamic place to gather and mingle, but also
a place to participate in the entertainment through interactive contests, theme nights, and other
events. We intend to heavily utilize entertainment-oriented marketing in an effort to withstand the
perpetual shift in trends and cater to as large a client base as possible.
Nightclubs and other drinking establishments rely heavily on their primary suppliers. The
primary suppliers are the various beverage distributors that provide the establishment
with both alcoholic and non-alcoholic beverages. The alcoholic beverages (beer, wine, and
liquor) are the primary sources of income in this industry. Other beverage suppliers also
play a crucial role by providing non-alcoholic beverages. These are either served alone or
mixed with alcohol.
In the area, all major brands of alcoholic beverages are available, in addition to several
regional brands of beer. Initial research shows that the major distributors in the market
have a high rating in both product availability and delivery.
4.3.1 Business Participants
The Nightclub will be part of the restaurant and bar industry, which includes several kinds
of businesses:
• Locally Operated Bars and Nightclubs - This genre usually appeals to the local
neighborhood clientele. This same client base dictates that the average price
structure be drastically scaled down in order to create "regulars."
• Nightclub Entertainment Complexes - This type of complex represents the concept we will
most closely compete with. They are typically placed in high traffic locations and are normally
treated as destination entertainment. An admission charge is usually in place and the
associated price structure is also most like our proposed structure. Thankfully there is not an
abundance if this type of entertainment within our region.
• Conventional Dining - Primarily owned by large national chains, usually less

than 10,000 square feet, focused on serving good quality food in a reasonable
amount of time in a dining room setting. The service and food quality are superior
to that of a fast food establishment. People go there to eat and leave when
they're done eating since there's rarely a reason to stay.
• Formal Dining - Similar to conventional dining yet offering a higher quality of

food and service for the added expense. As with the conventional dining facilities,
there is little interaction and when people are done eating, they leave.
• Casual Dining - Commonly building upon conventional dining with the addition of a bar,
playing of music and sporting events on numerous televisions. Some establishments offer
their own brand of beer made on the premises. The food quality and service are at best,
similar to that found in a conventional dining experience.
• Chain Entertainment - Typically manifested in each market through the Hard

Rock Cafes, The Planet Hollywoods, etc. We expect to create an atmosphere that
thrives on its trendy feel. These chain entertainment venues can not hope to draw
the same "hip" clientele.
4.3.2 Main Competitors
The Nightclub competition lies mainly with other casual facilities and less with conventional and chain
entertainment establishments. We need to effectively compete with the widely held idea that you
can't get good service anymore, while maintaining the idea that being out can be a lot of fun. Our
polling has indicated that consumers think of atmosphere, price, and quality respectively.
Additionally, price was frequently mentioned by pointing out that if the former concerns are present
then they are willing to pay more for the experience.
Our review of the market concludes that there are four entertainment venues that can be
considered direct competition to the proposed new venue. We do realize that the proposed venue
will also compete indirectly for every entertainment dollar spent in the Anytown area.
The main competitors of the Nightclub will be:
Club A
Hours of Operation: 5:00 P.M.-2:00 A.M.

Wednesday through Saturday
Capacity: 300
Wednesday College Night ($1 beers)
-This nightclub appeals to a college crowd seeking cheap drinks.
-The club is known for being dingy and dirty.
Bar B
Hours of Operation: 10:00 A.M.- 2:00 A.M.

Monday through Sunday
Capacity: 400
Thursday College/Ladies Nights
-This club appeals to 25-35 year olds.
-Pool and video games are central focus.
-Dancing is pushed to the back of the club.
Grill C
Hours of Operation: 6:00 P.M.-2:00 A.M.

Wednesday through Saturday
Capacity: 250
-This club's target customer is 25 to 45 years old / middle class or above.
-This club is known for its older, dressed up crowd and cramped space.
Club D
Hours of Operation: 11:00 A.M.-2:00 A.M.

Monday through Sunday
Capacity: 350
-This club's target customer is 25 to 45 years old.
-This club is known for live jazz and blues entertainment and their draught beers.
5.0 Strategy and Implementation Summary
In order to place emphasis on exceptional service, our main tactics are bi-monthly service
training, employee recognition, and higher service employee to customer ratios. Our
specific programs for training include employee for life training for management, customer
for life training for employees, and the sharing of success stories among employees and
management. Our specific employee recognition programs include employee of the month
with a personal parking space, service excellence recognition awards of specific employees
attached to advertising. To achieve higher service employee to customer ratios, we include
separate beverage servers and bussing personnel, as well as maintaining a comfortable
table count for the wait staff.
Our second strategy is emphasizing entertainment. The tactics are interactive

entertainment, constant sensory appeal, and unique event viewing. Our specific programs
for interactive entertainment and constant sensory appeal are frequent contests, games,
music, and karaoke all hosted by an in-house dj who is also in charge of event
programming for the main room and lounge. A billiard room will overlook the main area.
Billiards was selected due to its widespread popularity (fifth most popular sport in the
world, according to CNN). A limited number of video and pinball games, as well as
computer dart boards, will compliment the billiard tables in order to offer a less interactive
entertainment option. With an adjoining bar and plenty of seating, yet another unique
experience could be carved out of a visit to the Nightclub.
Our promise fulfillment strategy may be our most important. The necessary tactics are ongoing value-
based training, maintenance, and attention to detail, especially after popularity has been established.
Through empowerment of service employees to solve problems without making a customer wait for
management consultation we create a win-win situation for the customer and the restaurant.
Continuous and never-ending improvement is the order of the day through our regular training
sessions and meetings. Since value is equal to service rendered minus the price charged, it is crucial
to go beyond the mere serving of food in a room full of lights and sound, you have to create a long-
lasting impression.
• Emphasize exceptional service -- We MUST prove to guests that exceptional service

is still available and should be expected as part of a dining experience. We need to
differentiate ourselves from the mediocre service venues.
• Emphasize an entertaining experience -- By assuring that all guests will enjoy
themselves, we would be securing market share through repeat business.
• Focus on target markets -- Our marketing and themes of mass appeal and
music based entertainment will attract our target market segments.
• Differentiate and fulfill the above promises.
We can't just market and sell another dance club, we must actually deliver on our promise
of quality, service and a unique guest experience. We need to make sure we have the fun
and service intensive staff that we claim to have.
5.1 Marketing Strategy
A high growth area, such as Your City, has an annual influx of new residents from many
other parts of the country. This trend is true of Your State in general.
Many new residents, as well as many existing ones, are members of clubs in other
markets. The Nightclub is a place for all. The enabling technology will be an inherent part
of the Nightclub's image.
Advertising budgets and event promotion are ongoing processes of management geared
to promote the brand name and keep the Nightclub at the forefront of the dance theme
establishments in Your City's marketing area.
We depend on radio advertising as our main way to reach new customers. Our strategies
and practices will remain constant, as will the way we promote ourselves:
• Advertising -- We'll be developing a core positioning message.

• Grand Opening -- We will concentrate a substantial portion of our early
advertising budget towards the 'Grand Opening Event.'
• Direct Marketing -- We'll directly market to local hotels surrounding the powers
and the local airport.
The Nightclub will create an identity-oriented marketing strategy with executions

particularly in radio media, alongside print ads, and in -store promotions.
A grand opening event will be held to launch the Nightclub in the summer of 2001. A radio
advertising blitz will precede the event for three weeks, with ambiguous teasers about an
"event like no other" in the city's history and the forthcoming opening date. Contests will
be held on the target radio stations giving away V.I.P. passes (coupons) to the event while
at the same time, creating excitement about the opening. We will leverage our relationship
with the Dallas Cowboy Cheerleaders to be present on the night of the grand opening. The
opening date is tentative at this point and dependent upon construction completion. The
budget for the event will be $10,000, and the milestone date will parallel the available
opening date, currently June of 2001.
Achievement of the following campaigns will be measured by the polling of customers as

to how they heard of the Nightclub for the first ninety days of operation. Budget
adjustments will be made as the results dictate.
We will be running regular local radio and newspaper ads to create brand awareness. Our
radio ads will be concentrated strongly on Magic FM, the city's top radio station among
our target market segments. Through commercial repetition, a teaser campaign, and the
use of catchy phrases, we hope to obtain intellectual ownership of our target market
segments: when they think dance club and bar they'll have to think the Nightclub. Drink
specials will also be staples of our radio advertising in order to bring people in. HK will be
responsible for ongoing radio ads with a monthly budget of $12,000 per month for the
first ninety days, followed by an ongoing budget of $6500 per month.
We will advertise directly to local hotel guests in the local airport and surrounding the Boulevard
areas to attract business travelers and tourists with no knowledge of where to go in the evening.
Through the use of fliers and table tents to place in hotel rooms, we hope to create visitor
awareness of our location and event promotion. Promos such as 'show your room key and get a free
drink' in conjunction with the room ads would be relatively inexpensive from an advertising
standpoint and requires limited ongoing maintenance and expense. BK will be responsible for direct
advertising with a start-up budget of $3,000 and a maintenance budget of $1,000 per month. The
milestone date will be thirty days after the
grand opening event.
Ads will also go into the college newspapers for the local campuses of Your State College and the
University of Your State. HK will be responsible for this program. The monthly budget for these ads
will be $300. The event date will be in tandem with the grand opening.
Shirts, ball caps, and bumper stickers bearing the Nightclub's logo will be marketed, as
well as given away as prizes, in order to further spread brand awareness. Artistic design
will be HK's responsibility and merchandising will be headed by DD. A start-up budget of
$1800 will be in place and a monthly promotional (giveaway) budget will also exist.
5.2 Sales Strategy
Sales projections for this plan are presented in the following topics.
5.2.1 Sales Forecast
This chart represents our forecast for Income on a monthly basis. The table presents
yearly expected sales. Complete monthly forecast figures for the first year are presented
in the appendix.
Sales Monthly
$300,000
$250,000
$200,000
$150,000 Beverage Sales

Food Sales
$100,000 Admission Sales
$50,000
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Table: Sales Forecast

Sales Forecast
Sales 2001 2002 2003

Beverage Sales $1,346,100 $1,480,710 $1,628,781
Food Sales $93,500 $102,850 $113,135
Admission Sales $836,740 $920,414 $1,012,455
Total Sales $2,276,340 $2,503,974 $2,754,371
Direct Cost of Sales 2001 2002 2003
Beverage Sales $336,525 $370,178 $407,196
Food Sales $30,855 $33,941 $37,335
Admission Sales $0 $0 $0
Subtotal Direct Cost of Sales $367,380 $404,119 $444,531
5.2.2 Daily Revenue Forcast
This table illustrates our daily revenue forecast for X,xxx total square feet.
We are assuming a seating capacity for said space of XXX guests. In addition, we expect
just less than one complete rotation of this space for food and beverage guests alike.
Daily
Revenue Mon Tue Wed Thu Fri Sat Sun Weekly
Breakdown
**
Total Guests
Charged 0 0 325 475 675 775 0 2,250
Admission
Average $7 $7 $7 $ 10 $10 $10 $7 $9.57
Admission Fee
Total
Admission $0 $0 $2,275 $ 4,750 $6,750 $7,750 $0 $21,525
Sales
Total Bar 0 0 350 550 775 1,100 0 2,775
Guests
Average
Drinks per 0 3 3 3 3 3 3 3.25
Person
Average
Beverage $12.50 $ 12.50 $10.00 $12.50 $12.50 $12.50 $12.50 $12.18
Sales per
Guest
Average Price $0 $ 3.75 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75
per Drink
Total
Beverage $0 $0 $3,500 $6,875 $9,688 $13,750 $0 $33,812
Sales
Total
Admission $0 $0 $5,775 $11,625 $16,438 $21,500 $0 $55,337
and Beverage
Sales
Total Food 0 0 30 50 70 100 0 250
Guests
Average Food
Sales per $5.00 $5.00 $7.50 $7.50 $7.50 $7.50 $5.00 $45.00
Guest
Total Food $0 $0 $225 $375 $525 $750 $0 $1,875
Sales
Misc. Sales
(10% of $0 $0 $578 $1,163 $1,644 $2,150 $0 $5,533
Gross Sales)
Total Revenue $0 $0 $6,578 $13,163 $18,606 $24,400 $0 $62,746
**based on 750-person capacity
6.0 Management Summary
The management team is an especially close one. One of the presidents has been married to the
vice president for seven years. The two co-presidents have worked directly together for three and a
half years at four positions. One of the presidents has worked with the bar manager in the past and
has known him for nearly ten years. Together we share a single vision: to provide a unique and
entertaining experience through exceptional service.
The company will have six managers, including the two presidents, and three managers
who have yet to be recruited.
6.1 Management Team
DD, Co- President. D has a bachelors degree in business management, five years management in
the restaurant/bar business, consultative experience opening other bars, six subsequent years
management in the car industry ending currently with his current position as department manager.
D's specific responsibilities will lie primarily with the coordination of events and oversight of the
operations and evening activities of the restaurant and bar.
BK, Co-President. B is pursuing a life- long ambition of restaurant/nightclub ownership.

Three years of restaurant kitchen experience and nearly eight years of experience
managing people ending with three and a half years of finance management. B is
committed to not only creating a successful business but also successfully running it. Even
though his hands-on experience in business management is extensive through the finance
business, he has spent the last year and a half researching business and business
ownership in his spare time. B's specific responsibilities will be administrative management
to include inventory management, accounts payable, purchasing, payroll, and public
relations with limited marketing involvement (mostly direct) to other companies.
HK, Vice President. H has a bachelor's degree in industrial media management. Her
experience ranges from radio marketing sales to three years as a financial analyst for L3
Communications. H is a born leader to whom people of all levels flock. H's responsibilities
will be limited to marketing with local radio and newspaper and her day-to-day role in the
restaurant will be a mostly silent one.
MC, Bar Manager. M has more than fifteen years bartending and bar management
experience. M is eagerly awaiting the opportunity to work at a restaurant/bar where
things are done correctly and the customer is put first. In addition to managing the bar,
its personnel, and the djs, M will also be third in command under the two co-presidents.
The positions of office, kitchen and dining room managers have yet to be filled at this time.
These positions will be openly sought along with the remainder of the staff.
6.2 Management Team Gaps
We believe we have a solid team constructed in order to cover the main points of the
business plan. Management growth through training will be an ongoing component of
the Nightclub's priorities.
However, we do realize that we may not have the hands on specific knowledge that may be
required to execute pre-opening and opening phases of the venture. We also realize that
we may benefit greatly from the retention of a hospitality industry consultant to guide us
through the aforementioned time frames, as well as to consult with us through the first two
years of our operation.
To this end we have contracted with hospitality industry specialist Joe Sorge of SVC Nightclub and Bar
Services, Inc. His involvement will exist in several facets, most notably, through providing assistance
in launching this venue. SVC has over 12 years of experience in the hospitality industry and has
assisted many first-time operators in getting their proposed venues launched successfully. SVC will
assist in the development of the design, concept, and strategies of the new business. SVC is also a
full-service advertising agency and will assist in all production and placement of all advertisement for
the new venue. In addition, they will assist in the hiring process of the management staff, djs,
bartenders, waitresses, and security staff. They will also provide educational services for
management-level personnel who will be responsible for the day-to-day operations of the club. If you
are interested in Mr. Sorge's company, visit them on the Web at: http://www.nightclub-business.com
Interviews for a general manager, operations manager, and all other personnel will be
conducted under the advisement of Joe Sorge of SVC. The co-presidents, Mr. D and Mr.
K, will make final decisions for each position.
These gaps will be filled as the opening date draws closer.
6.3 Personnel Plan
The Personnel Plan reflects the objective of providing an ample amount of service personnel.
Our headcount will remain at thirty unless any unforeseen demands dictate otherwise.
Assume a burden rate of 17%.
DAILY STAFFING (750-person capacity)

Hourly Employees
Day Position Quantity Rate Avg Hrs Sub-total Burden Total
Monday Staff Cost/Mon. 0 $0 0 $0 $0 $0
Tuesday Staff Cost/Tues. $0 $0 $0
Wednesday Waitress 2 $5.00 7.5 $75

Security 4 $7.00 6.5 $195
Bartender 2 $5.00 7.5 $75
Barback 1 $4.50 7 $31
Police Detail 1 $15.00 0 $0
Misc. $8.00 0 $0
Staff Cost/Wed. $376 $64 $441
Thursday Waitress 3 $5.00 7.5 $113

Security 5 $7.50 6.5 $244
Bartender 3 $5.00 7.5 $113
Barback 1.5 $4.50 7 $47
Misc. 0 $15.00 0 $0
Staff Cost/Thur. $516 $88 $604
Friday Waitress 4 $5.00 7.5 $150

Security 7 $7.50 6.5 $341
Bartender 4 $5.00 7.5 $150
Barback 2 $4.50 7 $63
Misc. 0 $15.00 0 $0
Staff Cost/Fri. $704 $120 $824
Saturday Waitress 4 $5.00 7.5 $150

Security 9 $7.50 6.5 $439
Bartender 5 $5.00 7.5 $188
Barback 2 $4.50 7 $63
Misc. 0 $15.00 0 $0
Staff Cost/Sat. $839 $143 $982
Sunday Staff Cost/Sun. 0 $0 0 $0 $0 $0

Ttl Wkly/Hrly $2,436 $414 $2,850
Salaried Staff
Position Salary Yearly Weekly Burden Total
Manager #1 Oper Prtnr $55,000 $877 $179
Manager #2 Oper Prtnr $55,000 $877 $179
Manager #3 General Mgr $50,000 $798 $163
Manager #4 PR Mgr $45,000 $718 $147
Manager #5 Bar Mgr $35,000 $558 $114
Manager #6 Asst. $25,000 $399 $81
Entertainmnt DJ $65,000
Ttl Salaried $5,480 $866 $6,346
Ttl Weekly Staff $9,196
Table: Personnel
Personnel Plan 2001 2002 2003
Salaried Staff $284,736 $298,968 $313,916

Hourly Staff $107,200 $112,560 $118,188
Total People 0 0 0
Total Payroll $391,936 $411,528 $432,104
7.0 Financial Plan
The financial projections for this plan are presented in the tables and charts of the
following subtopics.
7.1 Important Assumptions
The financial plan depends on important assumptions, most of which are illustrated in
the following table.
The key underlying assumptions are:
• We assume a slow-growth economy of five percent the first year, and three
percent thereafter, without major recession.
• We assume that we will grow as managers during the process, this growth
will manifest itself as flat line expense growth over the five-year period,
leading to increased annual cash flow.
• We assume access to equity capital and financing sufficient to maintain our

financial plan as shown in the tables.
• We assume continued popularity of nightclubs in America and the growing demand

for high-energy themed and casual dining venues.
Table: General Assumptions

General Assumptions 2001 2002 2003
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.00% 25.00% 25.00%
Sales on Credit % 10.00% 10.00% 10.00%
Other 0.00% 0.00% 0.00%
Calculated Totals
Payroll Expense $391,936 $411,528 $432,104
Sales on Credit $227,634 $250,397 $275,437
New Accounts Payable $1,757,759 $1,874,826 $1,998,594
Inventory Purchase $363,139 $404,445 $444,889
7.2 Break-even Analysis
The SVC Nightclub and Bar Services Break-Even Analysis formulas are presented in the
text below. Business Plan Pro's interactive table and chart are still linked to the program
spreadsheets.
Fixed Costs $X,xxx,xxx

Variable Costs $Xxx,xxx
Revenue (Estimated)$X,xxx,xx
*S = Gross Sales
S = $ + [($Xxx,xxx/ $X,xxx,xxx) x
S] S = $X,xxx,xxx + [(.xxxx) x S]
S = $X,xxx,xxx
Break Even Point = $X,xxx,xxx
Average Nightly Break Even Revenues – approximately $ X,xxx

Minimum Nightly Required Spending Per Person - $8.75 + $9.75 =
$18.50 Minimum Nightly Required Incoming Traffic – Xxx
Table: Break-even Analysis

Break-even Analysis:
Monthly Units Break-even 139,924

Monthly Revenue Break-even $139,924
Assumptions:
Average Per-Unit Revenue $1.00

Average Per-Unit Variable Cost $0.16
Estimated Monthly Fixed Cost $117,342
Break-even Analysis
$100,000
$50,000
$0
($50,000)
($100,000)
($150,000)
$0 $40,000 $80,000 $120,000 $160,000 $200,000
Monthly break-even point
Break-even point = where line intersects with 0
7.3 Projected Profit and Loss
Projected profit and loss statement for the nightclub follows. Three years' annual totals
are shown below. Monthly breakdown for year one appears in the appendix.
Table: Profit and Loss

Pro Forma Profit and Loss 2001 2002 2003
Sales $2,276,340 $2,503,974 $2,754,371

Direct Cost of Sales $367,380 $404,119 $444,531
Production Payroll $0 $0 $0
Other Production Expenses $0 $0 $0
------------ ------------ ------------
Total Cost of Sales $367,380 $404,119 $444,531
Gross Margin $1,908,960 $2,099,855 $2,309,840
Gross Margin % 83.86% 83.86% 83.86%
Expenses:
Payroll $391,936 $411,528 $432,104
Sales and Marketing and Other Expenses $411,576 $430,574 $451,284
Depreciation $0 $0 $0
Fees--Credit Card $10,764 $10,982 $11,202
Fees--Professional $7,500 $7,650 $7,803
Taxes--Admission $0 $0 $0
Taxes--Excise $391,536 $399,368 $407,355
Taxes--Property $0 $0 $0
Leased Equipment $2,496 $2,550 $2,601
Utilities $36,000 $36,720 $37,454
Insurance $22,500 $22,950 $23,409
Rent $75,000 $75,000 $76,500
Payroll Taxes $66,629 $69,960 $73,458
Other $0 $0 $0
------------ ------------ ------------
Total Operating Expenses $1,415,937 $1,467,282 $1,523,170
Profit Before Interest and Taxes $493,023 $632,573 $786,670
Interest Expense $0 $0 $0
Taxes Incurred $123,256 $158,143 $196,668
Net Profit $369,767 $474,430 $590,003
Net Profit/Sales 16.24% 18.95% 21.42%
Include Negative Taxes TRUE TRUE TRUE
7.4 Projected Cash Flow
The following chart illustrates our monthly cash flow for year one. The table shows three years of
annual totals. First year monthly figures as presented in the appendix. The months are weighted
according to the amount of weeks in that month in a typical calendar year.
Cash
$600,000
$500,000
$400,000
$300,000
Net Cash Flow
$200,000 Cash Balance
$100,000
$0
($100,000)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Table: Cash Flow

Pro Forma Cash Flow 2001 2002 2003
Cash Received
Cash from Operations:

Cash Sales $2,048,706 $2,253,577 $2,478,934
Cash from Receivables $212,383 $248,872 $273,760
Subtotal Cash from Operations $2,261,089 $2,502,449 $2,752,693
Additional Cash Received
Non Operating (Other) Income $0 $0 $0

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $2,261,089 $2,502,449 $2,752,693
Expenditures 2001 2002 2003
Expenditures from Operations:

Cash Spending $144,573 $155,044 $166,133
Payment of Accounts Payable $1,690,420 $1,869,949 $1,993,429
Subtotal Spent on Operations $1,834,992 $2,024,993 $2,159,562
Additional Cash Spent
Non Operating (Other) Expense $0 $0 $0

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $1,834,992 $2,024,993 $2,159,562
Net Cash Flow $426,097 $477,456 $593,132
Cash Balance $501,097 $978,553 $1,571,685
7.5 Projected Balance Sheet
The following Balance Sheet indicates healthy growth of net worth and a strong
financial position. The monthly estimates are included in the appendix.
Table: Balance Sheet

Pro Forma Balance Sheet
Assets
Current Assets 2001 2002 2003

Cash $501,097 $978,553 $1,571,685
Accounts Receivable $15,251 $16,776 $18,453
Inventory $3,259 $3,585 $3,943
Other Current Assets $0 $0 $0
Total Current Assets $519,607 $998,914 $1,594,082
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $519,607 $998,914 $1,594,082
Liabilities and Capital 2001 2002 2003
Accounts Payable $67,339 $72,217 $77,382

Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $67,339 $72,217 $77,382
Long-term Liabilities $0 $0 $0
Total Liabilities $67,339 $72,217 $77,382

Paid-in Capital $567,750 $567,750 $567,750
Retained Earnings ($485,250) ($115,483) $358,947

Earnings $369,767 $474,430 $590,003
Total Capital $452,267 $926,697 $1,516,700
Total Liabilities and Capital $519,607 $998,914 $1,594,082
Net Worth $452,267 $926,697 $1,516,700
7.6 Business Ratios
The Ratios table below outlines important ratios for this Nightclub. The last column,
Industry Profile, is derived from the Standard Industrial Classification (SIC) Index code
5813, for Drinking Places.
Table: Ratios
Ratio Analysis 2001 2002 2003 Industry Profile
Sales Growth 0.00% 10.00% 10.00% 1.90%

Percent of Total Assets
Accounts Receivable 2.94% 1.68% 1.16% 4.60%

Inventory 0.63% 0.36% 0.25% 3.10%
Other Current Assets 0.00% 0.00% 0.00% 44.60%
Total Current Assets 100.00% 100.00% 100.00% 52.30%
Long-term Assets 0.00% 0.00% 0.00% 47.70%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 0.00% 0.00% 0.00% 28.20%
Long-term Liabilities 0.00% 0.00% 0.00% 23.10%

Total Liabilities 0.00% 0.00% 0.00% 51.30%
Net Worth 100.00% 100.00% 100.00% 48.70%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 83.86% 83.86% 83.86% 42.30%
Selling, General & Administrative Expenses 67.36% 64.67% 62.20% 23.40%
Advertising Expenses 8.79% 8.39% 8.01% 2.40%
Profit Before Interest and Taxes 21.66% 25.26% 28.56% 2.80%
Main Ratios
Current 7.72 13.83 20.60 1.14

Quick 7.67 13.78 20.55 0.74
Total Debt to Total Assets 12.96% 7.23% 4.85% 51.30%
Pre-tax Return on Net Worth 109.01% 68.26% 51.87% 5.20%
Pre-tax Return on Assets 94.88% 63.33% 49.35% 10.60%
Business Vitality Profile 2001 2002 2003 Industry
Sales per Employee $0 $0 $0 $32,619

Survival Rate 69.64%
Additional Ratios 2001 2002 2003
Net Profit Margin 16.24% 18.95% 21.42% n.a

Return on Equity 81.76% 51.20% 38.90% n.a
Activity Ratios
Accounts Receivable Turnover 14.93 14.93 14.93 n.a

Collection Days 44 23 23 n.a
Inventory Turnover 40.00 118.10 118.10 n.a
Accounts Payable Turnover 26.10 25.96 25.83 n.a
Payment Days 20 163 164
Total Asset Turnover 4.38 2.51 1.73 n.a
Debt Ratios
Debt to Net Worth 0.15 0.08 0.05 n.a

Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $452,267 $926,697 $1,516,700 n.a

Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.23 0.40 0.58 n.a

Current Debt/Total Assets 13% 7% 5% n.a
Acid Test 7.44 13.55 20.31 n.a
Sales/Net Worth 5.03 2.70 1.82 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg
23
Appendix Nightclub - Sample Plan
Appendix Table: Sales Forecast
Sales Forecast
Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Beverage Sales $44,600 $77,100 $96,300 $131,700 $152,800 $167,100 $165,700 $155,200 $134,900 $108,500 $76,800 $35,400
Food Sales $4,900 $6,300 $7,100 $7,900 $9,100 $9,900 $10,000 $9,400 $8,700 $7,500 $6,600 $6,100
Admission Sales $34,100 $56,800 $74,600 $76,900 $75,100 $82,900 $88,440 $87,000 $82,400 $74,200 $60,400 $43,900
Total Sales $83,600 $140,200 $178,000 $216,500 $237,000 $259,900 $264,140 $251,600 $226,000 $190,200 $143,800 $85,400
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Beverage Sales 25% $11,150 $19,275 $24,075 $32,925 $38,200 $41,775 $41,425 $38,800 $33,725 $27,125 $19,200 $8,850
Food Sales 33% $1,617 $2,079 $2,343 $2,607 $3,003 $3,267 $3,300 $3,102 $2,871 $2,475 $2,178 $2,013
Admission Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $12,767 $21,354 $26,418 $35,532 $41,203 $45,042 $44,725 $41,902 $36,596 $29,600 $21,378 $10,863
Appendix Table: Personnel
Personnel Plan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Salaried Staff $23,728 $23,728 $23,728 $23,728 $23,728 $23,728 $23,728 $23,728 $23,728 $23,728 $23,728 $23,728
Hourly Staff $5,100 $8,700 $9,400 $9,500 $9,900 $10,600 $10,900 $10,700 $9,500 $8,500 $7,600 $6,800
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $28,828 $32,428 $33,128 $33,228 $33,628 $34,328 $34,628 $34,428 $33,228 $32,228 $31,328 $30,528
Appendix Table: General Assumptions

General Assumptions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Sales on Credit % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10. 00% 10.00% 10.00% 10.00% 10.00% 10.00%
Other 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00%
Calculated Totals
Payroll Expense $28,828 $32,428 $33,128 $33,228 $33,628 $34,328 $ 34,628 $34,428 $33,228 $32,228 $31,328 $30,528
Sales on Credit $8,360 $14,020 $17,800 $21,650 $23,700 $25,990 $ 26,414 $25,160 $22,600 $19,020 $14,380 $8,540
New Accounts Payable $104,102 $131,517 $143,124 $159,122 $166,996 $174,879 $ 174,769 $169,184 $158,085 $143,945 $126,808 $105,227
Inventory Purchase $9,097 $23,930 $27,937 $38,266 $42,904 $46,194 $ 44,630 $41,055 $35,004 $27,501 $18,911 $7,709
Appendix Table: Profit and Loss

Pro Forma Profit and Loss Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $83,600 $140,200 $178,000 $216,500 $237,000 $259,900 $264,140 $251,600 $226,000 $190,200 $143,800 $85,400
Direct Cost of Sales $12,767 $21,354 $26,418 $35,532 $41,203 $45,042 $44,725 $41,902 $36,596 $29,600 $21,378 $10,863
Production Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Cost of Sales $12,767 $21,354 $26,418 $35,532 $41,203 $ 45,042 $44,725 $41,902 $36,596 $29,600 $21,378 $10,863
Gross Margin $70,833 $118,846 $151,582 $180,968 $195,797 $214,858 $219,415 $209,698 $189,404 $160,600 $122,422 $74,537
Gross Margin % 84.73% 84.77% 85.16% 83.59% 82.61% 82.67% 83.07% 83.35% 83.81% 84.44% 85.13% 87.28%
Expenses:
Payroll $28,828 $32,428 $33,128 $33,228 $33,628 $ 34,328 $34,628 $34,428 $33,228 $32,228 $31,328 $30,528
Sales and Marketing and Other Expenses $34,298 $34,298 $34,298 $34,298 $34,298 $ 34,298 $34,298 $34,298 $34,298 $34,298 $34,298 $34,298
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Fees--Credit Card $897 $897 $897 $897 $897 $ 897 $897 $897 $897 $897 $897 $897
Fees--Professional $625 $625 $625 $625 $625 $ 625 $625 $625 $625 $625 $625 $625
Taxes--Admission $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes--Excise $32,628 $32,628 $32,628 $32,628 $32,628 $32,628 $32,628 $32,628 $32,628 $32,628 $32,628 $32,628
Taxes--Property $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $208 $208 $208 $ 208 $208 $208 $208 $208 $208 $208 $208 $208
Utilities $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Insurance $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875 $1,875
Rent $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250
Payroll Taxes 17% $4,901 $5,513 $5,632 $5,649 $5,717 $5,836 $5,887 $5,853 $5,649 $5,479 $5,326 $5,190
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses $113,510 $117,722 $118,541 $118,658 $119,126 $119,945 $120,296 $120,062 $118,658 $117,488 $116,435 $115,499
Profit Before Interest and Taxes ($42,677) $1,124 $33,041 $62,310 $76,671 $94,913 $99,119 $89,636 $70,746 $43,112 $5,987 ($40,962)
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($10,669) $281 $8,260 $15,578 $19,168 $23,728 $24,780 $22,409 $17,687 $10,778 $1,497 ($10,240)
Net Profit ($32,008) $843 $24,781 $46,733 $57,503 $71,185 $74,339 $67,227 $53,060 $32,334 $4,490 ($30,721)
Net Profit/Sales -38.29% 0.60% 13.92% 21.59% 24.26% 27.39% 28.14% 26.72% 23.48% 17.00% 3.12% -35.97%
Include Negative Taxes
Appendix Table: Cash Flow

Pro Forma Cash Flow Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations:
Cash Sales $75,240 $126,180 $160,200 $194,850 $213,300 $233,910 $237,726 $226,440 $203,400 $171,180 $129,420 $76,860
Cash from Receivables $0 $4,459 $11,379 $16,036 $19,853 $22,743 $24,921 $26,216 $25,745 $23,795 $20,691 $16,545
Subtotal Cash from Operations $75,240 $130,639 $171,579 $210,886 $233,153 $ 256,653 $262,647 $252,656 $229,145 $194,975 $150,111 $93,405
Additional Cash Received
Non Operating (Other) Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $75,240 $130,639 $171,579 $210,886 $233,153 $256,653 $262,647 $252,656 $229,145 $194,975 $150,111 $93,405
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations:
Cash Spending $7,835 $10,415 $11,614 $13,379 $14,202 $14,987 $14,936 $14,342 $13,264 $11,822 $10,035 $7,740
Payment of Accounts Payable $35,935 $109,070 $132,693 $143,770 $159,835 $168,047 $175,213 $174,358 $167,463 $156,487 $142,360 $125,188
Subtotal Spent on Operations $43,771 $119,486 $144,307 $157,149 $174,037 $183,034 $190,150 $188,699 $180,727 $168,309 $152,395 $132,928
Additional Cash Spent
Non Operating (Other) Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $43,771 $119,486 $144,307 $157,149 $174,037 $183,034 $190,150 $188,699 $180,727 $168,309 $152,395 $132,928
Net Cash Flow $31,469 $ 11,153 $27,272 $53,737 $59,116 $73,619 $72,497 $63,957 $48,419 $26,665 ($2,284) ($39,523)
Cash Balance $106,469 $117,622 $144,894 $198,631 $257,747 $331,366 $403,863 $467,820 $516,239 $542,904 $540,620 $501,097
Appendix Table: Balance Sheet

Pro Forma Balance Sheet
Assets
Current Assets Starting Balances Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash $75,000 $106,469 $117,622 $144,894 $198,631 $257,747 $331,366 $403,863 $467,820 $516,239 $542,904 $540,620 $501,097
Accounts Receivable $0 $8,360 $17,921 $24,343 $29,957 $33,803 $37,050 $38,543 $37,487 $34,341 $29,567 $23,256 $15,251
Inventory $7,500 $3,830 $6,406 $7,925 $10,660 $12,361 $13,513 $13,418 $12,571 $10,979 $8,880 $6,413 $3,259
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $82,500 $118,660 $141,950 $177,162 $239,247 $303,911 $381,929 $455,824 $517,877 $561,559 $581,351 $570,289 $519,607
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $82,500 $118,660 $141,950 $177,162 $239,247 $303,911 $381,929 $455,824 $517,877 $561,559 $581,351 $570,289 $519,607
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Accounts Payable $0 $68,167 $90,614 $101,045 $116,398 $123,558 $130,391 $129,947 $124,773 $115,395 $102,853 $87,301 $67,339
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $68,167 $90,614 $101,045 $116,398 $ 123,558 $130,391 $129,947 $124,773 $115,395 $102,853 $87,301 $67,339
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $68,167 $90,614 $101,045 $116,398 $ 123,558 $130,391 $129,947 $124,773 $115,395 $102,853 $87,301 $67,339
Paid-in Capital $567,750 $567,750 $567,750 $567,750 $567,750 $ 567,750 $567,750 $567,750 $567,750 $567,750 $567,750 $567,750 $567,750
Retained Earnings ($485,250) ($485,250) ($485,250) ($485,250) ($485,250) ( $ 485,250) ($485,250) ($485,250) ($485,250) ($485,250) ($485,250) ($485,250) ($485,250)
Earnings $0 ($32,008) ($31,164) ($6,383) $40,349 $ 97,853 $169,038 $243,377 $310,604 $363,664 $395,998 $400,488 $369,767
Total Capital $82,500 $50,492 $51,336 $76,117 $122,849 $ 180,353 $251,538 $325,877 $393,104 $446,164 $478,498 $482,988 $452,267
Total Liabilities and Capital $82,500 $118,660 $141,950 $177,162 $239,247 $303,911 $381,929 $455,824 $517,877 $561,559 $581,351 $570,289 $519,607
Net Worth $82,500 $50,492 $51,336 $76,117 $122,849 $180,353 $251,538 $325,877 $393,104 $446,164 $478,498 $482,988 $452,267

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Nightclub — Sample Plan

This sample business plan was created using Business

To learn more about Business Plan Pro and other planning

Copyright © Palo Alto Software, Inc., 1995-2006. All rights reserved.

The undersigned reader acknowledges that the information provided by

It is acknowledged by reader that information to be furnished in this business plan is in all

Upon request, this document is to be immediately returned

This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3.0 Business Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

4.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

5.0 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

7.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

1.0 Executive Summary

The main objectives of the development of this new venue are:

• Capitalize on excellent location opportunity with swift commitment to the new

The keys to success in achieving our goals are:

• Provide exceptional service that leaves an impression.

2.0 Company Summary

The key elements of the Nightclub's concept are as follows:

2. Distinctive design features -- The Nightclub will be characterized by the elaborate

2.1 Company Ownership

2.2 Start-up Summary

Total Assets $ 82,500

Total Capital $82,500

3.0 Business Description

4.0 Market Analysis Summary

4.1 Market Segmentation

2. College Students--By creating an environment that is appealing to college

Table: Market Analysis

Potential Customers Growth 2001 2002 2003 2004 2005 CAGR

Market Analysis (Pie)

Childless Young Professionals

4.2 Target Market Segment Strategy

The marketing strategy is essential to the main strategy:

• Emphasize exceptional service.

4.3 Service Business Analysis

4.3.1 Business Participants

• Conventional Dining - Primarily owned by large national chains, usually less

• Formal Dining - Similar to conventional dining yet offering a higher quality of

• Chain Entertainment - Typically manifested in each market through the Hard

4.3.2 Main Competitors

The main competitors of the Nightclub will be:

Hours of Operation: 5:00 P.M.-2:00 A.M.

Hours of Operation: 10:00 A.M.- 2:00 A.M.

Hours of Operation: 6:00 P.M.-2:00 A.M.

Hours of Operation: 11:00 A.M.-2:00 A.M.

5.0 Strategy and Implementation Summary

Our second strategy is emphasizing entertainment. The tactics are interactive

• Emphasize exceptional service -- We MUST prove to guests that exceptional service

5.1 Marketing Strategy

• Advertising -- We'll be developing a core positioning message.

The Nightclub will create an identity-oriented marketing strategy with executions

Achievement of the following campaigns will be measured by the polling of customers as

5.2 Sales Strategy

5.2.1 Sales Forecast

$150,000 Beverage Sales

Table: Sales Forecast